Elasticity of demand and behaviour-based price discrimination

Information provision and behaviour-based price discrimination

This article examines a model wherein firms first advertise their existence to consumers and, in the two following periods, compete with uniform pricing and then with behaviour-based price discrimination. I show that allowing firms to price discriminate can restore symmetry in equilibrium advertising decisions. I also establish that price discrimination increases (resp. decreases) profits and t...

The Price Elasticity of Marijuana Demand

This paper uses crowd-sourced transaction data from a cross-section of the US to examine demand for marijuana. State and regional variations in consumption, price and quality are explored. Price elasticity of demand estimates range between -0.3 and -0.6. Noticeable price differences are found between high, medium, and low quality marijuana, with high quality marijuana, at $13.57 per gram, 144% ...

Master Price elasticity of demand for cigarettes

Ipu Bibliography: Price Elasticity of Electricity Demand

" …the price of electricity was found to be a significant determinant of electricity demand in most cases with the expected inverse relationship (higher prices mean less consumption).The results provided no evidence that the responsiveness of Ontario industrial demand to the price of electricity during time periods when demand is the strongest has strengthened since market opening except, perha...

Information Structures, Price Discrimination and Demand Uncertainty

Numerous contract scenarios in information technology goods and services, telecommunications, digital entertainment, and supply chain contracting feature demand uncertainty for individual customers (demand is subject to idiosyncratic demand shocks that change marginal valuations). Sellers in these scenarios often use non-linear pricing mechanisms (flat rate, two part tariffs, three-part tariffs...